The battleground over a £32bn high-speed rail network moved from the shires to the north after the government outlined the case for a second phase linking Birmingham to Manchester and Leeds.

Undaunted by a backlash in Tory heartlands over plans for a 225mph London-to-Birmingham line, the transport secretary, Philip Hammond, backed plans for joining it to a Y-shaped national network. The proposals include a link to the Channel tunnel rail route that would transport passengers in Manchester and Leeds to Paris in less than four hours without a London stopover.

However, the proposals for 200 miles of new track are likely to be of more immediate concern to the thousands of households that line the potential routes in Yorkshire, Staffordshire, Cheshire and Derbyshire. The Campaign to Protect Rural England (CPRE) said the economic arguments in favour of the northern extension of High Speed Two (HS2) could be drowned out by protests over blight. "As this proceeds, we are going to hear some very different voices from the north, arguing passionately about the beautiful local countryside," said Ralph Smyth, CPRE's senior transport campaigner.

"Take the Cheshire area around Wilmslow, which lies right on the likely route of the Birmingham-to-Manchester line. You have got very wealthy, very influential people there, who are not going to take happily to HS2 driving through."

Launching a consultation on a national high-speed network, Hammond was confident that the economic case would prove more powerful with residents in the north than it has in the home counties, with the full route forecast to produce a £44bn boost to the UK. "Ironically the further north we get the easier it will get. Once you get further away from the south-east people seem to understand more clearly the argument on jobs and growth."

According to the Department for Transport, the first phase alone would help create 40,000 jobs.

Hammond said the northern section could open in 2032, six years after the London-to-Birmingham route. A consultation on the specific route will start next year after detailed plans are published. It is understood that more than a dozen routes are under consideration for phase 2, which will be reduced to a shortlist by early 2012. If the proposals receive the green light, journey times to Manchester and Leeds from London will be reduced from more than two hours to 73 and 80 minutes respectively.

Sources said planning for the Birmingham-to-Leeds section has proved particularly challenging, due to the hilly landscape and the number of small mining communities and former collieries dotted along the potential route. "It is a complicated landscape," said one expert.

Hammond said ramblers in the Peak District would not be disturbed by bullet trains tearing through an area of outstanding natural beauty, with the Birmingham-to-Leeds line likely to pass between Derby and Nottingham, and to the east of one of Britain's most stunning national parks. However, the Chiltern Hills, another area of outstanding natural beauty, have been less fortunate and the first phase of the network will pass through the area when the line opens in 2026.

Hammond said environmentally friendly amendments to the London-to-Birmingham route published in the consultation, such as deeper cuttings, would be repeated when the northern extension is drafted: "We will be doing exactly the same as we are doing in the Chilterns. We will work with communities and engineers to minimise the effect on sensitive landscapes."

The Department for Transport is confident the rail route will challenge one of the major bastions of domestic aviation – the London to Scotland route – with a forecast journey time of three-and-a-half hours. Rail would take half of the air-rail market, the consultation argued. The current figure stands at 20%. Under the proposals high-speed trains will leave the network at Manchester and Leeds and travel to Scotland on conventional lines.

The consultation argues that high-speed rail is the obvious solution to a looming capacity shortage on England's major rail routes, pointing out that passengers are already forced to stand up on peak-hour services on those lines.

The document states: "Long-term forecasts have been developed on demand growth on these three main north-south lines out of London which connect the majority of Britain's major cities. These forecasts look forward to the early 2040s and show that, even allowing for a range of enhancements to these lines, crowding levels on long-distance services will continue to rise."

However, the debates over blight and economics are likely to rumble on. Critics of the programme pounced on revised figures in the consultation, which showed that the economic benefit of the first phase would equate to £2 for every £1 spent, instead of the £2.70 that was forecast last year.

"That is mediocre value for money by official Treasury standards," said Stephen Glaister, director of the RAC Foundation.

A government source said that earlier estimates had been based on "fantastical" forecasts by the Labour government.